Breakingviews: Telefonica's bidding war

Telefonica has upped its bid for Vivendi’s GVT to €7.5 bln. Rival Telecom Italia valued the broadband company at €7 bln. Breakingviews says Vivendi could yet wring more out of this auction.

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I live -- Brazil's telecoms market size and -- he's not yet again from Chris Hughes is looking at this. Breaking views -- and just just just run us through exactly what's happening now we've got the technical Italian Telefonica Italy and Spain. I'm going to GVT. The Vivendi Brazilian broadband unit by Telefonica Telefonica is -- -- it. That's -- right so this is. -- -- and that we expects its. Telefonica submissive that. For the fourth time this into the bid -- TVT two now Telefonica has counted and I think stands. Telefonica has what looks on paper. Like the benefits it -- -- -- seven point yes some of forefront that in an era is verses seven billion prompt -- mare. Candles that is more cash in the telephone call from a Telefonica is -- from the pressure on not only have -- All of a -- -- until -- on price I mean if you value. Cash and that is questionable -- but normally. Vandals prefer to have more cash consideration. It's also pretty old is also putting a deadline. All on it on this proposal saying. It's. In his -- represent quick. However us all how about sided there's some caveats around we also news mood. And the the possible right -- and the move and he is -- In France. Potential. These interest in beefing up in. In its in the so we a loss just is that as this is not a wave yet. So it's a basic you will -- suggest or fairness -- have pieces. It that have been. Vivendi is gonna Obama are about to Telefonica is that it's gonna force Telefonica to get even higher because actually TV team event -- -- all right when it's. The touted. Well I think Obama is that probably Telefonica can afford to I have been able. They're a huge potential sentences in this and it doesn't look right now Telefonica is painless way to say. From the event people perspective it must thinking we can maybe squeeze that more around now. Just -- holes the that's a contaminant all awful it is looks no it doesn't mean. That Vivendi's homes still use that as. On some kind of leverage have Telefonica he knows TI made. May come back with. Is something a little bit entries. It's called see how -- -- financial resources to do public and -- more spoken to that puzzle and then and then -- mark on pop. Telephone has also reopens as -- just yet. -- target ID three ministries by the way on the bring -- sites. George you Russia twelve cities and 1730 BST. I'm -- problems is horses.

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